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Federal court blocks ACA coverage for Dreamers

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December 10, 2024
in Health Care
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Federal court blocks ACA coverage for Dreamers

A federal court in North Dakota has blocked Affordable Care Act (ACA) coverage for immigrants that came into the U.S. illegally as children, also known as “Dreamers.”

U.S. District Judge Daniel M. Traynor on Monday granted Kansas, alongside 18 other states, a stay regarding a final rule from the Biden administration allowing some Dreamers access to the ACA marketplace, according to court documents. He also granted Kansas and the other states a preliminary injunction barring the federal government “enforcing the Final Rule against” them.

In May, the Biden administration announced the final rule, from the Centers for Medicare and Medicaid Services (CMS) that would let active recipients of Deferred Action for Childhood Arrivals (DACA) enroll in a qualified or basic health plan under the ACA, as well as forms of financial assistance.

DACA recipients have been considered not “lawfully present” when it comes to health care law due to prior CMS rules, resulting in some recipients to fall out of coverage.

“The authority granted to CMS by the ACA is to ascertain whether an individual meets the requirements for lawful status. It by no means allows the agency to circumvent congressional authority and redefine the term “lawfully present,” Traynor said in his Monday ruling. 

A leader of those opposed to the final rule in the case, Kansas Attorney General Kris Kobach (R), celebrated the ruling in a statement Monday.

“This decision is a big win for the rule of law,” Kobach said. “Congress never intended that illegal aliens should receive Obamacare benefits. Indeed, two laws prohibit them from receiving such benefits. The Biden administration tried to break those laws. But we fought back and defeated the Biden Justice Department.”

In a statement, a CMS spokesperson said the agency “is reviewing the court’s decision; however, the agency does not comment on litigation.”

The Hill has reached out to the Department of Justice for comment.

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